Maudore Announces Year End 2013 Results and Filing of Proxy Circular for Annual and Special Meeting

April 25, 2014

MONTREAL, April 25, 2014 /CNW Telbec/ – Maudore Minerals Ltd. (“Maudore” or the “Corporation“) (TSXV: MAO) (US OTC: MAOMF) (Frankfurt Exchange: M6L) announces its results for the fiscal year ended December 31, 2013.
Financial results are based on International Financial Reporting
Standards (“IFRS”) and dollars are reported in Canadian currency,
unless otherwise noted.

Highlights for 2013

        --  Acquisition of Aurbec Mines Inc. ("Aurbec") (previously named
            NAP Québec Mines Ltd) from North American Palladium Ltd on
            March 22, 2013 funded through a secured term loan of $22
            million ("Credit Facility") provided to the Corporation by FBC
            Holdings S.à r.l. ("FBC");
        --  Closing a brokered private placement for $15.5 million on April
            12, 2013;
        --  Initiation of exploration and development drilling underground
            at Sleeping Giant on the new ore zones and extensions to the
            historical high grade zones;
        --  Suspension of the Vezza project's development on July 16th,
            2013 and subsequent mine out of the currently developed ore
            zones by the end of September 2013;
        --  August 2013 re-start of underground mining at the Sleeping
            Giant mine in remnant mining areas;
        --  Completion of a custom milling agreement with Abcourt Mines Inc
            ("Abcourt") in September 2013;
        --  Recent reduction in gold prices created a strain on the
            Corporation's cash resources. Ongoing discussions took place
            throughout the year with its creditors. In March 2014, the
            Corporation has reached an agreement with FBC which provides it
            with access to additional funding (the "FBC Agreement") (refer
            to press release dated March 14, 2014).


        --  Revenues of $1.6 million in 2013 coming from the sale of gold
            at the Sleeping Giant mine and custom milling. In 2012, there
            were no gold sales as Maudore was an junior exploration
        --  Net loss of ($30.3) million in 2013, or ($0.73) per share
            compare with a net loss of ($14.7) million, or ($0.55) per
            share in 2012. Out of importance, the following non-recurring
            expenses were incurred:
      o $11.0 million impairment on Vezza following the suspension of its
      o $3.5 million professional fees relating to the acquisition of
        Aurbec, the rights offering and debt restructuring negotiations. In
        2012, $1.7 million were incurred in professional fees on the proxy
      o $7.7 million for the fair value variation on the Credit Facility
        that must be recorded as per IFRS rules even though the Corporation
        reached the FBC Agreement;
        --  Vezza production of 10,249 ounces of gold of which 10,247 were
            sold in 2013 generating $14.3 million of revenues that are
            capitalized against the development cost of Vezza;

Proxy Circular

The Corporation also announces that it has mailed to shareholders and
filed in SEDAR the Management Proxy Circular that has been prepared in
connection with its upcoming annual and special meeting of shareholders
scheduled to be held on May 22, 2014.

At that meeting, shareholders will be asked to approve, among other
matters, the previously announced financing and debt restructuring
transactions entered into by the Corporation with FBC which have been
designed to improve the financial position of the Corporation. Should
the FBC Agreement not to be approved by the disinterested shareholders,
this would result in Maudore and/or Aurbec being in default of their
obligations under the Credit Agreement and of their payment obligations
towards other creditors. Should any of those creditors seek to
exercise their rights to obtain repayment of their debts, it is likely
that Maudore and/or Aurbec would seek protection under the Companies’
Creditors Arrangement Act (Canada) or the Bankruptcy and Insolvency Act
(Canada) and that in such a scenario the resulting value of the equity
shareholdings of the Shareholders would be reduced to virtually nil.

The Management Proxy Circular contains important information about these
transactions, as well as the unanimous recommendation of the
Corporation’s board of directors that shareholders vote to approve such

About Maudore Minerals Ltd.

Maudore is a Quebec-based junior gold company in production, with mining
and milling operations as well as more than 22 exploration projects.
Five of these projects are at an advanced stage of development with
reported current and historical resources and mining. Currently, gold
production is ramping up at the Sleeping Giant mine. The Corporation’s
projects span some 120 km, east-west, of the underexplored Northern
Volcanic Zone of the Abitibi Greenstone Belt and cover a total area of
1,532 km² with the Sleeping Giant Processing Facility within trucking
distance of key development projects.

Cautionary Statement Regarding Forward-Looking Statements

This release and other documents filed by the Corporation contain
forward-looking statements. All statements that are not clearly
historical in nature or that necessarily depend on future events are
forward-looking, and the words “intend”, “anticipate”, “believe”,
“expect”, “estimate”, “plan” and similar expressions are generally
intended to identify forward-looking statements. These forward-looking
statements include, without limitation, performance and achievements of
the Corporation, business and financing plans, business trends and
future operating revenues. These statements are inherently uncertain
and actual achievements of the Corporation or other future events or
conditions may differ materially from those reflected in the
forward-looking statements due to a variety of risks, uncertainties and
other factors, including, without limitation, financial related risks,
unstable gold and metal prices, operational risks including those
related to title, significant uncertainty related to inferred mineral
resources, operational hazards, unexpected geological situations,
unfavourable mining conditions, changing regulations and governmental
policies, failure to obtain required permits and approvals from
government authorities, failure to obtain any required approvals of the
TSX Venture Exchange or from shareholders, failure to obtain any
required financing, failure to complete any of the transactions
described herein, increased competition from other companies many of
which have greater financial resources, dependence on key personnel and
environmental risks and the other risks described in the Corporation’s
continuous disclosure documents.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

    Maudore Minerals Ltd.                                                  

    Consolidated Statements of
    Financial Position

    (in Canadian dollars)                                                  

                                           2013         2012         2011

                                             $            $            $

                                                   (restated)   (restated)



    Cash and cash equivalents             820,734    3,126,129   15,169,610

    Restricted cash                     3,316,161            -            -

    Tax credits receivable              4,705,289      149,286    3,682,447

    Accounts receivable                   291,299            -            -

    Sales tax receivable                  197,653      211,700      350,696

    Inventories                         3,130,141            -            -

    Prepaid expenses                      463,589       40,513       56,699

                                       12,924,866    3,527,628   19,259,452


    Reclamation deposit                 1,880,084            -            -

    Non-current portion of tax            613,825            -            -
    credits receivable

    Exploration and evaluation          5,325,775      710,469      557,248

    Property, plant and equipment       9,461,520            -            -

                                       17,281,204      710,469      557,248

    Total assets                       30,206,070    4,238,097   19,816,700



    Accounts payable and accrued        9,962,427    2,370,541    1,953,756

    Liabilities related to the                  -            -    5,435,214
    issuance of flow-through shares

    Credit facility                    27,315,324            -            -

    Current portion of obligations        185,407            -            -
    under finance leases

                                       37,463,158    2,370,541    7,388,970


    Term loans                                  -    3,091,383            -

    Obligations under finance leases       13,143            -            -

    Mine restoration provision          6,232,912            -            -

    Other liabilities                     212,706            -            -

                                        6,458,761    3,091,383            -

    Total liabilities                  43,921,919    5,461,924    7,388,970


    Share capital                      60,079,772   43,333,965   42,721,672

    Contributed surplus                 6,579,202    5,979,425    4,970,148

    Warrants                            1,050,803      599,777    1,176,091

    Deficit                          (81,425,626) (51,136,994) (36,440,181)

    Total equity                     (13,715,849)  (1,223,827)   12,427,730

    Total liabilities and equity       30,206,070    4,238,097   19,816,700

    Maudore Minerals Ltd.                                                  

    Consolidated Statements of Comprehensive Loss                          

    (in Canadian dollars)                                                  

                                                        2013         2012

                                                          $            $


    REVENUES                                         1,570,081            -

    OPERATING EXPENSES                                                     

    Production costs                                 4,189,843            -

    Depreciation and amortization                       91,593            -

    Total mining operating expenses                  4,281,436            -

    Loss from mining operations                    (2,711,355)            -

    OTHER EXPENSES                                                         

    General and administrative expenses              2,915,606    2,828,363

    Acquisition related expenses                     2,194,231            -

    Rights offering expenses                           683,388            -

    Debt restructuring expenses                        646,519            -

    Professional fees related to proxy contest               -    1,687,825

    Exploration and evaluation expenses                699,607   15,639,427

    Gain on disposal of property, plant and           (22,200)            -

    Impairment of property, plant and equipment     11,029,376            -

    Total other expenses                            18,146,527   20,155,615

    Loss from operations                          (20,857,882) (20,155,615)

    OTHER EXPENSES (INCOME)                                                

    Financial expenses                               1,649,394       63,313

    Fair value variation on credit facility          7,715,324            -

    Finance costs on mine restoration provision         77,210            -

    Interest income                                  (101,068)     (86,901)

    Loss before income taxes                      (30,198,742) (20,132,027)

    Deferred income taxes (recovery) and mining         89,890  (5,435,214)
    duty taxes

    NET LOSS AND COMPREHENSIVE LOSS               (30,288,632) (14,696,813)

    Maudore Minerals Ltd.                                                  

    Consolidated Statements of Cash flows                                  

    (in Canadian dollars)                                                  

                                                        2013         2012

                                                          $            $


    OPERATING ACTIVITIES                                                   

    Net loss                                      (30,288,632) (14,696,813)


    Recovery of deferred income taxes                        -  (5,435,214)

    Share-based compensation                                 -      672,300

    Accrued interest related to term loans            (18,329)       23,783

    Transaction costs related to term loans            284,397            -

    Fair value variation on credit facility          7,715,324            -

    Depreciation and amortization                       91,593            -

    Gain on disposal of property, plant and           (22,200)            -

    Impairment of property, plant and equipment     11,029,376            -

    Accretion on payables resulting from the            54,780            -
    acquisition of Aurbec Mines Inc.

    Finance costs on mine restoration provision         77,210            -

    Changes in working capital items                 2,318,794      411,147

    Net cash flows used in operating activities    (8,757,687) (19,024,797)

    INVESTING ACTIVITIES                                                   

    Acquisition of Aurbec Mines Inc.              (18,250,000)            -

    Additions to exploration and evaluation          (115,306)    (111,721)

    Additions to property, plant and equipment    (17,709,746)            -

    Sales deducted from capitalized costs           14,310,847             

    Proceeds on disposal of property, plant and         23,200            -

    Reclamation deposit                            (1,880,084)            -

    Tax credits received                             1,130,276    3,693,981

    Net cash flows from (used in) investing       (22,490,813)    3,582,260


    Term loans                                               -    3,250,000

    Repayment of term loans                        (3,250,000)            -

    Term loans structuring fees                      (107,451)    (182,400)

    Repayment of bank indebtedness                   (179,159)            -

    Issue of credit facility                        22,000,000            -

    Transaction cost paid to FBC Holding S.à r.l.    (440,000)            -

    Restricted funds                               (3,316,161)            -

    Repayment of obligation under finance leases     (142,930)            -

    Other liabilities                                   60,196            -

    Issue of shares                                 15,506,250      387,325

    Share issue expenses                           (1,187,640)     (55,869)

    Net cash flows from financing activities        28,943,105    3,399,056

    Net change in cash and cash equivalents        (2,305,395) (12,043,481)

    Cash and cash equivalents, beginning of year     3,126,129   15,169,610

    Cash, end of year                                  820,734    3,126,129

SOURCE Maudore Minerals Ltd.

Source: PR Newswire

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